Emirates to acquire German secondary aluminum producer

Emirates Global Aluminium (EGA), a United Arab Emirates (UAE)-based metals producer, has signed a binding sale and purchase agreement for the acquisition of a Leichtmetall Aluminium Giesserei Hannover GmbH. The acquired company makes 80 percent-recycled-content aluminum, according to EGA.

“Leichtmetall is a European specialty foundry with production including hard alloys and larger diameter billets with high proportions of secondary aluminum,” EGA says.

EGA will acquire 100 percent of Leichtmetall Hannover from an investment fund managed by Munich, Germany-based Quantum Capital Partners GmbH. The transaction is expected to close by June 30, subject to obtaining regulatory approvals.

EGA refers to the purchase as a “landmark transaction" that is its first major acquisition since EGA was formed through the merger of Dubai Aluminium and Emirates Aluminium a decade ago.

In addition to melting scrap, Leichtmetall uses renewable energy at its plant in Hanover, Germany, to produce up to 30,000 metric tons per year of aluminum billets.

“Leichtmetall and the 170,000 metric tons per year aluminum recycling facility we are building in the UAE are together a strong combination which will be part of shaping the future of EGA, enabling us to support our global customers in meeting their future carbon intensity and properties requirements for their metal," says Adel Abubakar, chief marketing officer at EGA.

“Alongside the recycling facility we are building in Abu Dhabi, [this] is just the first step for EGA in capturing growth opportunities worldwide in low carbon primary and recycled aluminum, expanding our business and enabling us to reach net zero greenhouse gas emissions by 2050."

“Becoming part of EGA, the largest ‘premium aluminum’ producer in the world, will unlock additional capital and resources for Leichtmetall to grow our business further, continue developing our technology and strengthen our ability to partner with international customers in Europe and beyond,” Leichtmetall CEO Thomas Witte adds.

EGA cites market analysts as predicting global demand for recycled-content aluminum to grow from some 27 million metric tons per year in 2022 to 57 million metric tons in 2040.